Irish exploration firm, Clontarf Energy, is in early talks with prospective equity partners.
The John Teeling-chaired, AIM-listed company is looking at options to rejuvenate its asset base, and to refresh shareholder value.
While management is open to undertaking new projects itself, the most likely outcome is for a private company to take a minority stake — of less than 29% — in Clontarf and bring fresh assets with it and, potentially, new board members.
Yesterday, Mr Teeling said progress had been made on such a deal, but it had collapsed, but other potential partners were in the frame, although it was too early to predict a timeline of events.
Clontarf has interests in Peru, Bolivia, and Ghana. Progress in the latter two regions has been stymied, due to government policy, while Peru is out of the company’s hands, as it only holds a 3% royalty right, from assets now controlled by a separate entity.
“We have an AIM listing, big shareholder base, access to potential investors, some cash, and extensive experience in the exploration sector. This is an attractive package for entrepreneurs wishing to grow a natural resources company...We can reboot Clontarf and seek out new opportunities,” said Mr Teeling, adding that all current assets still had potential.
“The fall in oil prices has decimated the junior resources sector, ourselves included, but has resulted in opportunities becoming available. To date, we have not found any which excite us, but we are monitoring a number of possibilities,” he added.
Clontarf’s latest annual results, yesterday, showed a 16% drop in operating losses, to £204,559 (€268,000), in 2015.
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